More SONG news--release

[General Lee]

Press Release Source: Song


Delta's Song Begins Service to All Three Major New York Area Airports
Monday August 4, 6:01 am ET
LaGuardia Debut Makes Song First and Only Low-Fare Service to Fly from LaGuardia, JFK and Newark
First Flight Departs from LaGuardia to Tampa


NEW YORK--(BUSINESS WIRE)--Aug. 4, 2003-- Song(TM), Delta Air Lines' new service designed to change customer expectations of high-quality, low-fare air travel, begins service from LaGuardia on Monday, August 4 with its maiden voyage from LaGuardia Airport to Tampa International Airport. This flight marks Song's expansion of service to all three major New York metropolitan area airports.
The inaugural flight departs LaGuardia at 11:30 a.m., and is scheduled to arrive in Tampa at 2:04 p.m. Additionally, the first flight from Tampa to LaGuardia departs at 7:00 a.m. and is scheduled to arrive in LaGuardia at 9:35 a.m. Song will initially offer for two daily roundtrip flights between LaGuardia and Tampa, and plans to add service to Ft. Lauderdale, Orlando and West Palm Beach.

"We are very pleased to be able to provide our customers traveling to and from the New York area more options and greater flexibility," said John Selvaggio, president of Song. "We are reintroducing fun, excitement and, most importantly, choice into the travel experience; we are very excited to be flying out of all three major New York area airports, making Song the convenient choice for low-fare, high-quality air travel."

Song, which will provide direct non-stop service initially between cities in the Northeast United States and key Florida leisure destinations, plus Atlanta, Los Angeles, Las Vegas and San Juan, will offer over 142 daily non-stop flights by October. Additionally, Song will service all three New York metro area airports -- JFK, Newark and LaGuardia -- the only low-fare service to do so.

Song will meet air travelers' individual and ever-changing needs through a variety of innovations, several of which are industry firsts. These include:

Regular updates to amenities and services based on customer feedback. Customers have the ability to vote on products and services via the Song Web site: www.flysong.com.
Web site to allow passengers to find low fares across a range of dates. When searching for flights at flysong.com, customers can instantly view additional low fares by selecting a wider range of dates rather than starting the search process from the beginning, for an experience that offers more information and flexibility.
The most advanced in-flight entertainment technology available (October 2003). Song is partnering with Matsu**CENSORED****CENSORED****CENSORED****CENSORED**a Avionics Systems and EchoStar Communications Corporation (NasdaqISH - News) and its DISH Network(TM) satellite TV service to provide a complement of on-board amenities, which will include:
Personal video monitors at every seat with "touch screen" technology and credit card "swipe" capability.
Live, all-digital satellite television programming from DISH Network.
Digitally-streamed MP3 audio programming, which will allow passengers to create a personal play list from an extensive library of audio files.
Pay-per-view programming available on demand, which will feature a wide-range of current offerings for all ages.
Multi-player interactive games that allow play between passengers.
Interactive iXplor moving map program with zoom capabilities and points of interest information.
Connecting gate information broadcast directly to personal in-seat video monitors.
Expandable in-flight entertainment technology which will facilitate the opportunity to integrate additional services in the future such as in-flight shopping and on-line product purchase capabilities.
Gourmet food selections created by Song Executive Chef Michel Nischan, including:
California vegetable soft taco.
Organic caesar chicken salad.
Organic gazpacho.
Premium branded beverage and food choices available on-board for purchase, including:
Stolichnaya Bloody Mary cocktails and Kahlua White Russians.
The "Song Sunrise," a cocktail created for Song containing a blend of Stolichnaya Vodka and fresh cranberry and orange juices and served in the first-ever in-flight martini glasses.
Lender's bagels.
Yoplait and Stonyfield Farms organic yogurts.
Fresh, seasonal organic fruit.
Onboard credit card acceptance for in-flight service items.
Complimentary Coca-Cola(TM) products, including Dasani water.
A simple unrestricted low-fare pricing structure with most one-way fares expected to be no more than $299.(a) Song will provide customers simple, user-friendly pricing options, including 14-day, 7-day, 3-day, walk-up fares and sale fares. Fares will not require a Saturday-night stay.
33 inches of seat pitch, or more legroom, throughout the entire aircraft. This is the most legroom available from any low-fare service's fleet and more than most major carriers.
Frequent flyer benefits through the Delta SkyMiles® program and other partner programs.
Simple, one-step connections with Delta's worldwide service, including interline with SkyTeam(TM) members and other partner airlines.
"Our customers will play a major role in the development of Song," said Selvaggio, a 30-year veteran of the airline industry. "They will be able to vote products and services onto the aircraft. They will be able to make each flight what they want it to be."

Selvaggio added, "We've put a great deal of thought into everything we will offer, understanding that each time a person flies, he or she has different expectations. They may be on business and want the ability to prepare for a meeting. They may be flying with children and need something to keep them entertained. Or they may be flying for pleasure and are looking for a way to relax on board. We will be able to serve each of those customers on Song, on every flight."

Assets Unique Among Low-Fare Segment

Technology: Unlike its competitors, Song has the advantage to leverage Delta's world-class technological infrastructure to create the world's first all-digital airline product, thereby offering customers a wide-range of conveniences, including:

Dedicated Web site - www.flysong.com. On the Web, Delta's technology infrastructure will support flysong.com, a simple, easy to use, information-rich site on which customers can purchase tickets, find lower fares, check-in for flights and print boarding cards from the convenience of their home or office.
First-ever book to ticket automation. (Available in fall 2003) Over the phone, customers will book and complete purchases directly with Song through voice-recognition technology.
Self-service kiosks. At the airport, self-service kiosks will continue to help customers avoid lines by electronically executing high-demand transactions.
Efficient gate and boarding. At the gate, exclusive gate information displays will ensure that customers remain informed up-to-the-minute. Additionally, gate and boarding technology will facilitate efficient, expedited boarding.
Cost savings through higher aircraft utilization: Delta has developed a process that facilitates Song's aircraft utilization rates to be among the highest in the industry -- 12.7 hours per day, a 22 percent improvement over mainline Delta's average 757 aircraft.

"Song is an aggressive initiative to compete in the low-fare market," concluded Selvaggio. "We will not only offer low fares but lower operating costs, so we can be successful where previous attempts by other major airlines have failed."

Song is an innovative low-fare service, which will provide non-stop flights between the Northeast and key Florida leisure destinations, plus Atlanta, Los Angeles, Las Vegas and San Juan, with over 142 daily flights on 36 Boeing 757 aircraft. All Song flights are operated by Delta Air Lines. Song tickets can be purchased by visiting flysong.com.



I know this is a press release and very biased---but there is a lot of good info here. I just watch John Salvaggio on CNBC get grilled and he had some good answers. ( I have also seen Neeleman from Jetblue on the show give the same type answers)
He said the July load factor was 77%, and that was better than expected. He claims that SONG will help Delta become more profitable, and said that despite the higher employee costs (pilots)--they have other ways to help with better efficiencies and Delta technology help. He also said that SONG will not take over mainline and that it will avoid the larger hubs to a large extent. (Song does currently fly from ATL-JFK). I think it is interesting indeed. And, the CNBC lady did make a big point that service to all three NYC airports was great--since not everyone from Manhattan or NJ wants to drive all the way to JFK. And yes, the TV system will not be ready until "Early 2004"--whatever that means......

Bye Bye--General Lee

 

[Daedalus]

Here's another article on song:

http://www.gamblingmagazine.com/managearticle.asp?c=70&a=308

 

[Ace757]

77% I would say thats pretty good. Anyone know what JetBlue's load factor was this past month. Im thinkin its 80% but im not sure. Watch out JBlue.....Song is a comin.

 

[Ace757]

General,
How do the mainline 757 crews feel about having to switch to Song? Is it voluntary

 

[jetblue320]

77% I would say thats pretty good. Anyone know what JetBlue's load factor was this past month. Im thinkin its 80% but im not sure. Watch out JBlue.....Song is a comin.

Our load factor for 2Q was 85.7%. I think (but won't swear to it) our load factor for July was close to, if not over 90%. I do know we had a few days in July that were 100%.

We are watching, but not worried. There is enough market share to go around and besides, our average ticket price in the markets Song flies is about $25-35 higher than Song's. What does that mean? It means they have to fly close to capacity to even get close to the yield we get even if we only fly 60% loads. They have to get their costs down to ours to really make any headway. But like I said, they are in markets where there is a lot of money to be made, period. Honestly, I wish them well. If they do good, so does our whole industry. Even if they fly our identical routes and frequencies, they can't do us any harm, at least for now. Our loads were the same in most of our markets before Song. Besides, the had DLX instead, and we are still here and thriving.

See ya.

 

[General Lee]

Ace,

The Delta crews fly both Song 757s and mainline 757/767's. They do not have to "pick one or the other" yet anyways. Guys from LA, SLC, and all of the bases pick up Song trips in their rotations. You might start out flying a 767-300 from LAX to JFK and overnighting at the Milford Plaza in Times Square. The next day you van to EWR and pick up a Song flight to PBI, and then fly up to BOS or up to LGA. That goes on for three or so days, and then you fly back to LAX from BOS via ATL etc. on a 767-200 (or the "tank" as we call it) The airplanes vary, which makes it interesting since all four models have different over head panels.

Daedalus,

I read your article and it didn't seem negative, but rather a potential "gamble" if the premise doesn't work out. I can understand that, but I keep saying that Delta and Song management have a plan. The Song flights fly passengers nonstop from dense markets and overfly the hubs, leaving seats available in the hubs and on 767-400's for passengers who will pay more from smaller cities served by RJs. So, a person in Peoria who wants to go to FLL will pay alittle more for that RJ ticket and subsequent 767-400 seat ticket, and have that seat available in ATL or CVG. The person in BOS or LGA who also wanted to go to FLL now can go nonstop and cheaper, and leave that seat open in ATL that he would have filled, and leave it for a guy in Peoria that will pay more because Jetblue and Southwest don't go there, yet. We now will make the hub flying seats a premium, and net more money---thanks to those small towns that aren't served by a LCC.

JetblueA320,

I know our load factor is alittle lower than yours, and I know that your initial load factor back in 1998 etc wasn't immediately full either. It will take time, and your product is obviously good, and we are trying to copy it or make improvements. You might be right about the ticket prices, but most New Yorkers that don't live close to JFK will still think the fares are a bargin compared to earlier fares. I bet we will bnth fill our planes and hopefully both net profits. You have to admit that delta is TRYING to produce a good product, and even though the TVs aren't in yet, the list of ammenities is impressive--if they are able to do it all. Throw in a frequent flyer program that is great (when you can get a seat) and choice of airports, and I think we will be good competition for you.

Bye Bye---General Lee

 

[Flying Freddie]

Here is a great ad campaign for Song. We are not only cheaper than DELTA , We are DELTA. We wanna be like jetBlue so someday we will have TV too!

 

[General Lee]

Freddie,

They are trying to make a different brand name, and we aren't even "allowed" to say Delta except once during the flight---by us "Thanks for flying Song, operated by Delta pilots..." And, when our TVs eventually do come in, our product will have many many more choices for the passengers compared to your airline. Re-read the list in the article. This airline was created to compete against you guys, and when everything is EVENTUALLY in place, it will be your greatest competition. Song will offer more--thru frequent flyer programs, airport locations, and onboard ammenities--with your same prices. (our extra 40 seats on the 757s will help pay for the cost differences) This will be interesting indeed.

Bye bye--General Lee

 

[Spur]

What kind of fuel consumption (pph) does the 757 have vice the A-320?

 

[General Lee]

I don't know the difference, but the 757 burns alittle more gas than the older 737-200, but carries 80 more passengers. Delta Express was a good idea to combat Southwest, but had the wrong type plane. The 757 fits perfectly, and with 199 seats, it could be a real money maker this winter. Heck, we need it.

Bye Bye--General Lee

 

[Dizel8]

I think the problem is, that everyone wants there to be a winner and a looser. Song is slated to be a great product for the consumer, so is jetBlue.

When fares are lowered, more people travel, just look at the SWA effect. I think, that this may very well happen with jetBlue and Song.

The loosers, if any, will be the network carriers that do not or cannot adopt and change. It will however be interesting, to see if DAL will compete in markets, that are also served by other majors. Will Song go JFK-SJU or will they stay away from AA?

I have no doubt, that the majors would gladly coexist having carved the country and the world up into their little dominions, but the LCC's may have issues with this and cause some ruckus.

We live in interesting times

 

[Anaconda]

Personal video monitors at every seat with "touch screen" technology and credit card "swipe" capability.
Live, all-digital satellite television programming from DISH Network.
Digitally-streamed MP3 audio programming, which will allow passengers to create a personal play list from an extensive library of audio files.
Pay-per-view programming available on demand, which will feature a wide-range of current offerings for all ages.
Multi-player interactive games that allow play between passengers.
Interactive iXplor moving map program with zoom capabilities and points of interest information.
Connecting gate information broadcast directly to personal in-seat video monitors.
Expandable in-flight entertainment technology which will facilitate the opportunity to integrate additional services in the future such as in-flight shopping and on-line product purchase capabilities.
Gourmet food selections created by Song Executive Chef Michel Nischan, including:
California vegetable soft taco.
Organic caesar chicken salad.
Organic gazpacho.
Premium branded beverage and food choices available on-board for purchase, including:
Stolichnaya Bloody Mary cocktails and Kahlua White Russians.
The "Song Sunrise," a cocktail created for Song containing a blend of Stolichnaya Vodka and fresh cranberry and orange juices and served in the first-ever in-flight martini glasses.
Lender's bagels.
Yoplait and Stonyfield Farms organic yogurts.
Fresh, seasonal organic fruit.
Onboard credit card acceptance for in-flight service items.
Complimentary Coca-Cola(TM) products, including Dasani water.
A simple unrestricted low-fare pricing structure with most one-way fares expected to be no more than $299

stupid question, but aside from the obvious cost factor, why doesn't delta just put all of this cool $hit on board all of the aircraft? why fly "normal fare" delta when "low fare" song has all of the cool stuff? perhaps then they will truly be a force to be reckoned with...

 

[General Lee]

Anaconda,

Good question. It is expensive, and since they furloughed 1310 pilots to pay for the Song stuff, I would have to say they would have to furlough another 3000 Delta pilots and have the rest fly 98 hour lines. Just a guess. (But, atleast management will get hefty bonuses)


Dizel8,

Well, Song has started MCO-SJU--and that competes with AA and a host of others, like Spirit and ATA. I don't know what the other routes will be when they have all 36 planes--but SJU is already there, so maybe they will go from JFK to SJU. Delta is the only Major to actually come up with an idea, market it, and go for it. United is thinking of their own out of their own hubs---which will confuse passengers---"Am I on United, United Express, United Shuttle, or United Starfish (A 60's term for ANUS)?" The Delta people wanted to come up with a seperate brand, and they have. They also gave it a lot of gizmos (some haven't been implemented yet--like the darn TV's), and a goofy name that is easy to remember for all of those soccer moms. I give credit to our management for coming up with something to combat Jetblue. Now I wish they could inspire the employees.

Bye Bye--General Lee

 

[Redtails]

Inspire the employees... Well, I have to say, having run-ins with the Song FAs, I'm quite impressed. However, I see it as being very divisive for the FAs from mainline, who've been quite beaten up from the lack of a union. I've talked with some Delta FAs who are very unhappy with management and the "audition" requirements for becoming a "Song Gal". This exudes a better product at Song, but what is left at mainline? I think if Delta is going to survive with the likes of AirTran and JetBlue, they'll have a better chance with Song than mainline-- at least when it comes to customer service in the cabin. Give it to Delta though, at least they're trying, it seems that US Airways, United, and American are just marching time until the inevitable.

 

[StopNTSing]

Freddie,

"Thanks for flying Song, operated by Delta pilots..."

You don't really say that to the passengers, do you?

 

[General Lee]

Stop,

Sure we do, and then I give them a quick tap dancing number in the fwd galley---followed by a Sinatra song-----"New York, New York!! All three airports served...!!!"

Bye Bye--General Lee

 

[jetblue320]

JB Load Factor

Our load factor for 2Q was 85.7%. I think (but won't swear to it) our load factor for July was close to, if not over 90%. I do know we had a few days in July that were 100%.

We are watching, but not worried. There is enough market share to go around and besides, our average ticket price in the markets Song flies is about $25-35 higher than Song's. What does that mean? It means they have to fly close to capacity to even get close to the yield we get even if we only fly 60% loads. They have to get their costs down to ours to really make any headway. But like I said, they are in markets where there is a lot of money to be made, period. Honestly, I wish them well. If they do good, so does our whole industry. Even if they fly our identical routes and frequencies, they can't do us any harm, at least for now. Our loads were the same in most of our markets before Song. Besides, the had DLX instead, and we are still here and thriving.

See ya.

Update: The official numbers came out this morning. The load factor for July was 90.6%. Sorry, I was off by .6 with my guess.

See ya.

 

[General Lee]

JetblueA320,

And with that great mind you cannot guess where your next potential hub will be? Niether can I. I know NYC has been great for you guys, but name another city that will help with your expansion plans and give you access to millions of passengers. Long Beach is constrained with slots, and the other LA airports are full--except maybe ONT. SFO has major weather delays, and OAK is getting full. FLL is pretty full thanks to you guys, and the only new terminal going up in BOS is ours. ATL is full and they are currently building another terminal for another one of your competitors (and ours) Airtran. DFW is full of RJs and AA. Pick any one of the hubs and you will see that there is little room for immediate expansion. Only COS, MCI, STL, CHM, maybe PIT, RDU, and BNA. Let's see an educated guess my friend.

Your July load factor is impressive. Hopefully ours at Song (and mainline eventually) will get that high someday soon.

Bye Bye--General Lee

 

[MLBWINGBORN]

Talk about a shot across the bow..Thats more like a shot thru the bridge windows..

This holiday travel season is going to be very interesting..

Mike

 

[NYRANGERS]

[Your July load factor is impressive. Hopefully ours at Song (and mainline eventually) will get that high someday soon.

Bye Bye--General Lee [/B]

I'm not sure how impressive their load factor is. I am more impressed by Delta's ~1000 airplanes at 82% then 41 Jetblue airplanes at 90.6%.

JMHO, good luck to all pilots, I wish you success and happiness.

NYR (thankful that Brian Leetch resigned)

 

[GREAT LAKES]

SONG

Hey General, I landed next to a Song 75 at BOS and they used the Delta call sign. Are they eventually going to have their own?

Also if this thing really takes off, where will the additional aircraft come from? Will they continue to take them from the mainline fleet? Do you think the Delta domestic operations could convert to all Song aircraft?

 

[General Lee]

Great Lakes,

Yes, the Song callsign is "Delta XXXX" and the flight number now usually is a 4 digit one starting with a 2----like 2457 etc.

I don't think they will change it to Song, unless they make it a seperate entity---and Dalpa doesn't want that. Also, the Song pilots also fly regular mainline flights throughout their rotations, so that might get really confusing for us. (I can hardly remember the flight number and when to call "wind check" on final....)

Fred Reid, our president, said CURRENT plans call for about 40 total 757s---but that probably will change. I believe we have 120 total 757s, and if Song does take off, more will likely go over there.
I don't think all of the domestic mainline flights will be Song. I think Song will fly between large cities with the allotted 757s, and the main hubs of ATL and CVG will be fed by 737-800s, 100 seat jets that are unknown at this time, coast to coast large jets like the 767-400s and domestic 767's, and 1000 RJs. Song will take pressure off the hubs by offering nonstop service between the larger cities (BOS, NYC, LAS, LAX---to FLA), and allowing more seats at the hubs to be offered to people transfering from RJ cities, like Des Moines. We will still have a large INTL presence at our hubs, too. That is how I see it----along with Airtran, Jetblue, and Southwest in our immediate scopes. Oh yeah, and BOS should be another smaller hub for us because we are building another large terminal there---adding to our debt. (And the pilots should be the ones paying for it.....)

Bye Bye---General Lee

 

[MLBWINGBORN]

GL..

You lost me here..

You said..


That is how I see it----along with Airtran, Jetblue, and Southwest in our immediate scopes.

Bye Bye---General Lee [/B][/QUOTE]

Im not sure what you were getting at..

Mike

 

[General Lee]

Our main competition for Song. (And Mainline probably too)

 

[Daedalus]

NYRANGERS Quote:

"I'm not sure how impressive their load factor is. I am more impressed by Delta's ~1000 airplanes at 82% then 41 Jetblue airplanes at 90.6%."

What I find impressive is that jetBlue was able to increase it's LF percentage while also significantly increasing capacity YOY. Everyone else (read: majors) increased their LF percentage only by reducing capacity, including Delta. BTW, this month jetBlue will have 46 airplanes in revenue service.


http://www.ajc.com/business/content/business/delta/0803/07airlines.html

 

[jetblue320]

NYRANGERS Quote:

"I'm not sure how impressive their load factor is. I am more impressed by Delta's ~1000 airplanes at 82% then 41 Jetblue airplanes at 90.6%."

Daedalus wrote in his reply:

What I find impressive is that jetBlue was able to increase it's LF percentage while also significantly increasing capacity YOY. Everyone else (read: majors) increased their LF percentage only by reducing capacity, including Delta. BTW, this month jetBlue will have 46 airplanes in revenue service.


http://www.ajc.com/business/content/business/delta/0803/07airlines.html

Plane #46 arrived last Friday, and she's a beauty! And 6 or 7 more by years end. What will be impressive it that jetBlue will more than likely reach major airline status this year end (by definition, $1 Billion in revenue) with 52 planes! Not bad.

And, I may be mistaken but I am pretty sure DL does not have 1000 planes but more like 600? Help me out here DL guys.

 

[NYRANGERS]

Plane #46 arrived last Friday, and she's a beauty! And 6 or 7 more by years end. What will be impressive it that jetBlue will more than likely reach major airline status this year end (by definition, $1 Billion in revenue) with 52 planes! Not bad.

And, I may be mistaken but I am pretty sure DL does not have 1000 planes but more like 600? Help me out here DL guys.

As a furloughed Delta guy, I can tell you Delta has around 550 airplanes, DCI operates a little less than that (although I think you got the point I was trying to make).

Try not to get to neurotic or culty here. I am not taking any kind of shot at your company. Your company is showing a profit durring a very hard time, that is very impressive. All I am saying is that filling up 46 planes on the routes you serve is not as impressive (to me) as filling up around 82% of our (I stand corrected) ~800 airplanes.

You work for one of the most successful companies durring this down turn, you don't need to be so defensive. (unless you know something we don't)

Good luck and fly safe,

NYR

 

[BlueBusDriver]

another interesting article......

Another interesting aviation article for your entertainment........








Low-fare Delta unit landing at NY airports
La Guardia flights complete strategy, but JetBlue is the gold standard
By Tommy Fernandez
Published on August 04, 2003


Delta Air Lines ups the ante in the discount air travel game today by launching its low-cost Song service out of La Guardia Airport.

The move completes Delta's four-month expansion of Song to all three major metro airports. The company is seeking to drum up interest in the brand as a "cheap chic" alternative to JetBlue Airways Corp. for the vital routes between New York and Florida. Locally, JetBlue operates only out of John F. Kennedy International Airport.

"It's not a question of whether we can compete with JetBlue; it's whether JetBlue can compete with us," says David Pflieger, Song's vice president of operations. "We offer more choices for airports, choices of food on the airplane and choices of times to fly."

Much to prove

Still, travel agents and other industry sources note that Song, which launched in mid-April, has yet to prove itself. And in pitting itself against Queens-based JetBlue, it's taking on one of the few airlines that's thriving these days.

Song will operate out of the Delta Terminal at La Guardia, as it does at Newark Liberty International Airport. It operates out of Delta's international terminal at JFK. With the expansion, Song is running a total of 22 daily flights from all three airports to West Palm Beach, Fort Lauderdale, Orlando, Tampa, Fort Myers and Atlanta. It plans to have 36 daily flights as of Oct. 1.

The new carrier is Delta's second foray into the no-frills arena, which accounts for more than 20% of air travel today. Song boasts a fleet of 36 Boeing 757s that are 3 years old on average. Its airfares to Florida destinations are comparable to JetBlue's, ranging from $75 to $230 one-way.

Customer confusion

Delta is using Song to replace its 7-year-old Delta Express line, which will cease operations on Aug. 31. Delta Express, Mr. Pflieger says, simply could not compete with low-cost carriers like JetBlue on the East Coast and Southwest Airlines across the Mississippi. Its airplanes, Boeing 737s that are 20 years old on average, are too expensive to maintain. Moreover, there wasn't any independent management to focus on distinguishing the brand from the mainline Delta, which led to customer confusion.

"People would hop into the Express planes and ask, `This is Delta-where is the food; where is the service?"' Mr. Pflieger says.

Customer dissatisfaction with Delta and the other major carriers has led to JetBlue's gains. J.P. Morgan aviation analyst Jamie Baker estimates that JetBlue controls nearly 21% of the New York-to-Florida market, while Delta and Continental Airlines each hover at 22%. JetBlue accounted for 19% of JFK's total traffic during the 12 months ended in May. Delta represented less than 6%.

JetBlue was one of the few airlines to actually post a profit in the second quarter this year. Its net income for the quarter was $37.9 million, or 55 cents per share, up 160% from results in the year-earlier period. Delta lost $237 million, or $1.95 per share, in the same quarter.

"JetBlue is really taking a bite out of the airlines out of New York," says James Gilliland, a director at Fitch Ratings. "Introducing a new low-cost service for the East Coast seems like Delta's answer to that."

A spokesman for JetBlue shrugged off Song's expansion, declaring that La Guardia is vulnerable to inclement weather. The airport, which operates just two runways that intersect, has to shut down one of them when visibility is too low, resulting in long lines for takeoff. In addition, because La Guardia is so small, it doesn't allow for much expansion.

"You could fit 10 La Guardias in JFK," the spokesman says. "We're not planning on expanding beyond Kennedy anytime soon."

Although there is a lag of several months before traffic figures are released for new airlines, anecdotal evidence among travel agents indicates that awareness of Song is growing only gradually.

Low-key publicity

"Delta has not really publicized the airline, so a lot of passengers are not even aware of the existence of this new carrier," says Moises Lugo, an agent with Liberty Travel.

Furthermore, the aviation industry is rife with examples of failed low-cost subsidiaries launched by the major airlines. These include Continental Lite, MetroJet from US Airways, and United Shuttle.

Many experts say that the large carriers simply can't compete in the low-fare market because their costs are too high.

Major carriers generally have a hub-and-spoke system, in which principal flights are routed through the airlines' main airports or hubs; in the case of Delta, that's Atlanta, its headquarters city. This structure is good for pooling passengers for long-distance flights but leaves the large carriers facing higher overhead than the low-cost airlines, which simply fly planes back and forth between a handful of destinations.

Higher salaries

The major airlines also have higher costs related to wages. According to Plunkett Research, Delta spends 44% of its revenue on wages, while JetBlue spends only 25%.


Mr. Pflieger argues that Delta can succeed with Song because it is implementing cost-cutting methods that nobody else has used.

For example, airplane downtime results in significant costs for carriers. After a flight, it can take as long as 90 minutes for passengers to exit and for the crew to reload a plane; that means that most carriers get to use their planes for maybe 10 hours or less in an 18-hour day.

Song has been able to cut downtime to less than 50 minutes by having cleaning crews enter planes before all the passengers have left and by installing conveyor belts inside its cargo bays to speed up loading. Consequently, it gets almost 13 hours of use from its planes in an 18-hour day.

Because of the minimized downtime and wage concessions from Song's nonpilot employees, Mr. Pflieger says, the average passenger cost per mile is roughly 7 cents, 22% lower than Delta's cost. JetBlue says its passenger cost is 6.25 cents per mile.

JetBlue Chief Executive David Neeleman says that success is still a long way off for Song.

"Delta's Song makes a lot of promises, but we've yet to see a lot of the things they've been talking about," he says. "It's one thing to tell people how good you are; it's another when the customers themselves are telling you you're doing a great job."

Copyright 2003, Crain Communications, Inc

 

[Mugs]

Reuters
Love is in the air, with minister dressed as Elvis
Friday August 8, 2:42 pm ET


CHICAGO, Aug 8 (Reuters) - Love is in the air.
Ten couples intend taking wedding vows in mid-air on Monday night aboard a plane flying from Orlando to Las Vegas.

More than 100 passengers will witness the in-flight ceremony, to be conducted by a minister dressed as Elvis.

One bride, Donna McDaniel, 39, of Longwood, Florida, said she and her fiance, Arvis Irvin, 54, had hoped to have a small civil wedding ceremony after dating for five years.

"He still hasn't told anybody, but I have," McDaniel said of Monday's nuptials. "I'm an Elvis fanatic."

The ceremony will take place on a Boeing 757 operated by Song, the four-month-old low-fare unit of Delta Air Lines.